DOJ Drops Investigation, Paving Way for Trump's Fed Nominee

The US Department of Justice's decision to step back from an investigation into Federal Reserve Chair Jerome Powell may have brought President Donald Trump's economic agenda one step closer to fruition. Trump's nominee to replace Powell, Kevin Warsh, has been awaiting a final Senate vote after a confirmation hearing. Warsh, who has significant personal wealth, including cryptocurrency assets, could now have a clearer path to confirmation after the DOJ dropped its investigation into Powell over a Federal Reserve building project. The investigation's closure follows a promise from Republican Senator Thom Tillis to block Warsh's confirmation as long as the DOJ pursued the case against Powell. With the investigation now passed to the Fed's inspector general, the odds of Warsh's confirmation before May 15 have increased significantly. The development could grant Trump greater influence over US monetary policy and leave him with more allies on the Fed board, impacting decisions on financial policy and the crypto industry. However, Senator Elizabeth Warren has dismissed the move, calling it an attempt to clear the path for Warsh's confirmation and noting the administration's ongoing pursuit of Fed Governor Lisa Cook in court.